I set up a term deposit bank account for my son a few months ago and it matures this month. I got the paperwork for it today and it seems that because he didn't provide a ABN (Aust. business number) or a TFN (tax file number) when we opened the account he is being taxed at near enough 50% on the interest. He's four and is a looooong way away from getting either number.

Now minors are exempt from this but why the heck wasn't it mentioned when we set up the account? It was pretty obvious that he was a minor (I distinctly remember him playing up in the bank that day) And when I rang the number about this they can't tell me anything because I'm not the account holder and they can't verify over the phone my authority of the account. how can they identify HIS authority any different to mine? How bloody stupid. I am sorely tempted to get the son on the phone and let them deal with it through him. Geeeez they make me mad LOL

Which bank? You got it.

Any red tape stories yourself ?

"And when I rang the number about this they can't tell me anything because I'm not the account holder and they can't verify over the phone my authority of the account. how can they identify HIS authority any different to mine?"



Oh my dear, you missed a golden opportunity to really have some fun. I would have done exactly what you suggested - I would have put that adorable four-year-old on the phone and insist that the bank staff deal with him to the bitter end of the transaction! Possibly nothing else would have adequately illustrated to them their monumental stupidity. Call me bloody-minded but they would have deserved it.

On a more serious note, I have been in exactly the same situation recently. Luckily, my daughter was old enough to sign the relevant papers, so it wasn't quite as bad.

The simplest way to resolve this is - apply to the tax department for a file number, then provide the bank with the file number. If the bank has already deducted the tax, they won't give it back. You'll have to file a tax return on your son's behalf, then the ATO will refund you and you can put the money back in his account. Once the bank has his tax file number, there should not be a problem and the bank should not withhold tax in future.

Ah excellent idea about getting him a TFN, he'll need it one day anyway. You know what the best idea the operator came up with? To put the money in my name so I could do the phone transactions. I actually goaned at that one. Why would I be signatory, trustee, whatever the right term is if I can't do the transactions on it? Pretty much decided that the next time I get into the branch I'll be closing it and moving to another bank just to prove a point, we only ended up at he Commonwelath when they brought out Colonial anyway . (But then will any others be any different? )

Well, I am a great believer in voting with your feet so changing banks is a good way to make your point. If everybody did that, they'd soon take notice.

The problem is that sometimes you don't have a choice with banks closing down their branches right, left and centre. Many places only have one bank, or none at all. And there is no guarantee the other banks will be any less pedantic about illogical rules and regulations.

When it comes time to do the paperwork, make sure your son signs - a nice big X in crayon should help make the point.

The Commonwealth bank redeemed themselves slightly. Last weekend I was stewing about this and decided to ring again on the Monday. I rang the branch this time, had my back up before they even answered, but I got the nicest woman who changed the amount of months it was to go in for, changed the tax thingy and also changed the address to the postal address for me. All without even asking my name let alone verifying me!!!! She'd probably be sacked if I wrote a commendation letter

When I said that I'd had all sorts of trouble getting anything done on the phonebank she just said "well, You're getting more money and leaving it in the same name ... can't see the problem myself, it's common sense isn't it?"

Not much of that about nowadays!

Glad to hear it's sorted out for you! The problem with common sense is that it ain't that common!

You're probably right that she'd get into trouble if you wrote a letter of commendation.

And I thought it was just in England we had this!! Our banks are just as bad, if not worse!!